budget: JUNE CREDIT 5,000 72,000 8,000 (000 7,000 Lina's company, Daisy's Delights Barkery & Boutique (DDB&B) is in the process of preparing their cash budget for the month of August. They have provided you with the following sales 3 GROSS SALES MAY JULY AUGUST S50,000 $60,000 $70,000 S80,000 45,000 54,000 3,000 CASH Based on past experience, 10% of all sales are cash sales while 90% are credit sales. The typical collection pattern for credit sales is 20% in the month of sale, 50% in the first month following sale and 25% in the second month following sale. There is an estimated uncollectible rate of 5%. The ending cash budget at July 31 is projected to be $10,000. Budgeted costs for the month of August are as follows: The minimum cash balance needed to start a month is $8,000. All borrowing must be in increments of $1,000. All expenses are paid in the month incurred except for inventory. Inventory is paid 1/3 in the month of purchase and 2/3 in the month following purchase $5,000 July Purchases of supplies $45,000 August Purchases of supplies $150,000 Salaries $65,000 Administrative expenses $20,000 (Includes $5,000 of depreciation expense) Rent $35,000 Amortization expense $7,000 Utilities expense REQUIRED: (1) Prepare a schedule of BUDGETED CASH RECEIPTS FOR AUGUST and (2) Prepare a CASH BUDGET FOR THE MONTH OF AUGUST. Assume total cash receipts (collected) for Part (1) was $70,000!! Show and label all computations!! Schedule 1 - DDB&B Company Casl Receipts for August (4 points) STASAW (6 points) Total Cash Receipts DB&B Cash Budget For the month of August Berminning balance add : Cash Receipts Assume $70,000 Total Cash Available S Cash Disbursements Ending Cash Balance 2